Opinion Number

Dear Mayor Fontenot:

You have asked me for an opinion on the enforceability of the ordinance that the City of New Iberia is in the process of adopting, levying a 4% excise (franchise) tax on utility businesses operating within the corporate limits of New Iberia. The ordinance provides that the 4% tax is levied unless a franchise agreement provides for a franchise fee in a different amount. This ordinance is similar to one adopted in Baton Rouge several years ago.

As I have indicated in previous discussions, I have been unable to find any reported court decisions that discuss ordinances of this…